LONDON (Reuters) - British insurer Aviva AV.L’s Canadian division said on Thursday it was buying the general insurance division of Canadian bank RBC RY.TO for C$582 million ($402.57 million).
Around 575 RBC Insurance employees will become part of Aviva Canada’s operations as a result of the acquisition of RBC General Insurance, Aviva Canada said in a statement.
Aviva Canada has also entered a 15-year agreement with RBC Insurance, enabling RBC Insurance customers to buy Aviva Canada’s property and casualty (P&C) insurance products, Aviva said.
Aviva said it will make an estimated net after-tax gain of C$200 million on the deal, which it said would increase Aviva Canada’s annual gross written premiums by around 20 percent.
Reporting by Carolyn Cohn; editing by Simon Jessop